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2013-62 INTERLOCAL AGREEMENT BETWEEN THE CITY OF CLERMONT AND THE TOWN OF OAKLAND FOR PROVISION OF WASTEWATER SERVICES THIS AGREEMENT is entered into between the CITY OF CLERMONT, FLORIDA (hereafter referred to as "CLERMONT"), and THE TOWN OF OAKLAND, Florida (hereafter referred to as "OAKLAND"), pursuant to the "Florida Interlocal Cooperation Act of 1969", section 163 01 Florida Statutes. WHEREAS, OAKLAND operates a water utility that serves approximately 1,200 customers, and WHEREAS, OAKLAND'S water utility customers presently use septic tanks as a means of wastewater removal, and WHEREAS, OAKLAND recognizes that septic tank use is a cause of environmental pollution, and WHEREAS, OAKLAND would like to provide wastewater services and implement a wastewater system within its water utility and thereby provide means to eliminate or reduce the use of septic tanks for waste removal, and WHEREAS, as OAKLAND recognizes that septic tank use limits certain opportunities for commercial development; and WHEREAS, OAKLAND recognizes the financial constraints of constructing its own wastewater treatment plant; and WHEREAS, CLERMONT operates a water and wastewater utility that serves approximately 34,000 customers; and WHEREAS, CLERMONT owns and operates a wastewater treatment plant (the "Plant") which has excess capacity sufficient to treat a certain quantity of wastewater from OAKLAND; and WHEREAS, CLERMONT recognizes that greater utilization of the Plant's excess capacity is more cost efficient, and WHEREAS, the acceptance and treatment by CLERMONT of wastewater generated by customers of OAKLAND'S water utility will be financially beneficial to both CLERMONT and OAKLAND and will be beneficial to the citizens of OAKLAND and CLERMONT and the public at large by providing a more environmentally acceptable method of wastewater disposal than that provided by septic tanks. NOW THEREFORE, the parties do hereby agree as set forth below: 1. The recitals above are true and correct and are incorporated into this Agreement as an integral part. 2 Subject to the terms, conditions and limitations of this Agreement and available capacity at the Plant, CLERMONT shall accept up to 1 2 million gallons per day of OAKLAND'S wastewater for treatment and disposal at the Plant (the "allotment") Notwithstanding the forgoing, nothing herein shall act as a reservation of capacity or commitment by CLERMONT to make available the allotment (or portions thereof) except for the vested allotment amounts as described in section 3, herein The allotment (or portions thereof) shall be made available to OAKLAND in increments or phases in accordance with the provisions set forth in Exhibit "A" attached hereto. CLERMONT's acceptance of wastewater from OAKLAND is subject to the wastewater being in compliance with the quality and other criteria for wastewater set forth in the Clermont City Code Chapter 66, and any and all amendments or successor provisions thereto, and as mandated by any and all applicable law and permits related to CLERMONT's wastewater treatment system. 3 Once any portion of the allotment is in "use" as described herein, the right of OAKLAND to transmit the quantity of wastewater justified by such use shall be deemed vested in OAKLAND (the vested allotment amounts). Upon such vesting OAKLAND shall be able to rely on the continued acceptance by CLERMONT of such quantity of wastewater for the duration of time that CLERMONT (or any successor) provides wastewater services to residents of CLERMONT. For purposes of this paragraph, "use" shall be deemed to occur upon the payment by OAKLAND of the Clermont Reduced Impact Fee (as provided in paragraph 8) for a particular property. The "quantity of wastewater justified by such use" shall be the average daily wastewater flow attributed to the property making use of such partial allotment, as set forth in Chapter 4 of the E P.A. Design Manual — Onsite Wastewater Treatment and Disposal Systems. OCT. 1980 U.S. Environmental Protection Agency, Office of Water Programs Operations, Office of Research and Development Municipal Research Laboratory. 4 OAKLAND shall pay to CLERMONT, in the manner specified in paragraph 10 of this Agreement, the sum of $4 80 per thousand gallons of wastewater accepted by CLERMONT from OAKLAND for treatment and disposal. This is an "Intergovernmental Wholesale Rate" which is exclusive to OAKLAND, based on conditions that are unique and specific to OAKLAND The Intergovernmental Wholesale Rate shall increase on October 1 of each year during the term of this Agreement commencing October 1, 2015 by such annual automatic adjustment rate as established by CLERMONT City Council and applicable to all CLERMONT sewer utility customers. Currently the rate is 1.95% and may be adjusted by future ordinance of CLERMONT The assent by CLERMONT to accept wastewater from OAKLAND shall not be construed to obligate CLERMONT to accept, or consider accepting, wastewater from other sources or to provide any operational or maintenance services of any kind related to any wastewater system constructed by OAKLAND. In addition to the above-referenced Intergovernmental Wholesale Rate, OAKLAND shall pay to CLERMONT a High Strength Surcharge and a Hydraulic Peaking Factor Surcharge, as may be applicable and as calculated in accordance with the formulas set forth in Exhibit B, attached hereto and incorporated herein 5. A flow meter and automatic flow recorder shall be the means of measuring the amount of wastewater transmitted by OAKLAND to the plant. OAKLAND shall, in accordance with CLERMONT"S current system requirements, install, or cause to be installed, at OAKLAND's expense, a flow meter assembly, air release valves, telemetry and associated piping (hereinafter collectively referred to as the "flow meter assembly) to transmit and record the data to CLERMONT'S computer system (SCADA). The flow meter assembly shall be constructed on property owned by OAKLAND and at a location agreed-upon by the parties. Upon acceptance, CLERMONT will own, operate and maintain the flow meter assembly and appurtenances. CLERMONT shall have the unrestricted right at any time to access to the flow meter assembly for purposes of operating and maintaining the system 6. OAKLAND, shall construct or cause to be constructed, at its sole expense, the sanitary sewer force main and pumping facility, as approved by CLERMONT, that may be required to transmit wastewater from OAKLAND's wastewater collection system to CLERMONT's existing force main at the location shown as "Point A" on Exhibit "C" attached and incorporated herein. OAKLAND also, at its sole expense, shall construct or cause to be constructed (by developers or other third parties), the collection system necessary for the collection and transmission of wastewater from individual homes, businesses and other customers of OAKLAND's water utility, to the force main which will in turn transmit the wastewater to CLERMONT's existing force main. OAKLAND acknowledges and agrees that at the time CLERMONT's forcemain is required to be upgraded or rerouted based on CLERMONT's 2008 Wastewater Master Plan for the Hartle Road corridor to accommodate the additional flow, OAKLAND shall pay proportionate share of the force main and lift station to CLERMONT upon commencement of the upgrade or reroute construction 7. The parties agree on a "Demarcation Point" as illustrated and described as "Point B" on Exhibit "C" attached and incorporated herein OAKLAND shall be responsible, financially and otherwise, for operation and maintenance of the wastewater system on Oakland's side of the Demarcation Point. CLERMONT shall be responsible, financially and otherwise, for operation and maintenance of the wastewater system on Clermont's side of the Demarcation Point. Provided however, that to the extent that OAKLAND's failure to properly operate and maintain the wastewater system on OAKLAND's side of the Demarcation Point so as to require maintenance or to cause damage to CLERMONT's side of the Demarcation Point, OAKLAND shall be fully responsible for the costs associated with the maintenance and damage repairs 8. The Parties acknowledge that capital costs for the Plant, CLERMONT'S force mains and wastewater collection system is recovered through CLERMONT'S collection from its customers of an Impact Fee (The Clermont Impact Fee). The Parties further acknowledge that customers of OAKLAND'S wastewater system will be charged an impact fee The Parties agree that OAKLAND upon the initial connection of customers to its wastewater system will be responsible for payment to CLERMONT of an amount that equals the Clermont Impact Fee for a similar customer less that portion attributable to CLERMONT'S collection system (the Reduced Clermont Impact Fee). A schedule showing the amount of the Reduced Clermont Impact fee for the various types of residential and business that would be connected to the system is attached as Exhibit "C". The payment by OAKLAND of Clermont's Reduced Impact Fee shall be no later than the date that a customer is initially connected to the wastewater system. The amount of the Clermont Impact Fee may be periodically adjusted by CLERMONT Adjustments shall take effect ninety (90) days after formal notification of same to OAKLAND The Parties acknowledge that the amount, time of payment, and other aspects of the Clermont Impact Fee shall be governed by Clermont's ordinance on that subject as it may be amended from time to time. The Parties further acknowledge that in the event that any existing customer use, connected to the wastewater system is expanded or changed so as to result in an increase impact fee pursuant to CLERMONT's ordinance, the increase impact fee, if any, subject to the reduction described herein, shall be paid at the time OAKLAND issues its final approval for the expansion or change of use. However, in no event shall OAKLAND be required to pay an amount attributable to the Clermont Reduced Impact Fee in excess of the impact fee that CLERMONT imposes on its own customers less the cost attributable to the wastewater collection system. In accordance herewith, OAKLAND shall provide to CLERMONT on a monthly basis an itemized list by owner's name, property address and work to be performed of all building permits issued in the previous month for customers connected to the wastewater system 9 OAKLAND agrees to maintain and regulate the use of its wastewater collection system, to minimize infiltration and prevent harmful wastes from being deposited into its facilities, such as would overload or cause damage to the Plant or interfere with the wastewater treatment process OAKLAND further agrees to the same extent as CLERMONT to require adequate pre-treatment of strong or harmful commercial wastes, at the source of generation, prior to permitting such wastes to be discharged into its system for treatment and disposal at the Plant As further assurance of OAKLAND'S compliance with this paragraph, if requested, OAKLAND agrees to provide CLERMONT with development plans of non-residential customers connecting to OAKLAND'S wastewater system The plans shall be provided to CLERMONT prior to the issuance of any pre- development_ approval, site approval, development order, construction or building permit by OAKLAND and as condition precedent to the connection of the non-residential customer to the wastewater system. It is expressly understood'and agreed that CLERMONT shall not be required or obligated to accept any wastewater generated by an industrial use or containing industrial waste. Furthermore,_CLERMONT shall have the right to reject any connection to the system or acceptance of wastewater hereunder for any use that CLERMONT reasonably determines is not in the best operational interests of CLERMONT's wastewater system 10. CLERMONT will invoice OAKLAND on a monthly basis for the amount due for treatment and disposal of OAKLAND's wastewater. The amount to be billed shall be based upon CLERMONT'S monthly reading of the quantity of wastewater transmitted from OAKLAND to CLERMONT as indicated by the flow meter and flow recorder referenced in paragraph 5, plus any surcharges as described in Exhibit `B" hereto. Payment will be due to CLERMONT no later than twenty days after the invoice is rendered. The capacity allotment granted herein to OAKLAND may not be sold, sublet, transferred or assigned by OAKLAND to any entity. CLERMONT represents that the Plant is readily susceptible to expansion and that such expansion can increase the Plant's capacity to accept additional wastewater for treatment. In the event that the capacity of the Plant becomes fully utilized prior to OAKLAND obtaining its desired capacity, CLERMONT agrees to work with OAKLAND in an effort to achieve an agreement for expansion of the Plant which as a minimum will be sufficient to accommodate OAKLAND'S remaining capacity requirements. 11. OAKLAND agrees to the extent permitted by law and without waiving its sovereign immunity, to hold harmless and defend CLERMONT, its officials, employees, contractors or agents for and from any and all damages including attorney's fees that may arise out of, or related to, any claim or cause of action, or threat thereof, of a third party, related in any manner to a customer connection to the OAKLAND wastewater system. 12 The Initial Term of this Agreement shall be 30 years from the effective date of this Agreement. This Agreement shall be effective upon final adoption of an ordinance or resolution (as each may require) by both CLERMONT and OAKLAND. The Effective Date shall be the date of final adoption by the last party. Notwithstanding the foregoing, The Vested Allotment Amounts, as provided in paragraph 3 herein shall not be affected by expiration of this Agreement. 13. This Agreement may not be terminated by either party prior to its expiration, unless an amendment to the Agreement is approved by both CLERMONT and OAKLAND, in writing, or if one party is in breach of any of the terms and conditions of this agreement and fails to correct it within thirty (30) days after written notice unless it requires more than thirty (30) days to make such corrections, and in such case the breach shall be cured within a reasonable time. 14. In the event of any dispute related to this Agreement, the parties agree to resolve the dispute consistent with the conflict resolution procedures established in Chapter 164, Florida Statutes If there is a failure to resolve the conflict, no later than 30 days following the conclusion of the procedures established in "The Florida Governmental Conflict Resolution Act" Chapter 164, a party may file an action in circuit court. Venue for any cause of action to be filed hereunder shall be exclusively in Lake County Circuit Court. 15. All notices, consents, approvals, waivers, and elections that either party requests or gives under this Agreement must be in writing and shall be given only by hand delivery, or by certified mail, prepaid with confirmation of delivery requested. Notices shall be delivered or mailed to the addresses and parties set forth below or as any party may otherwise designate in writing. City of CLERMONT: CITY MANAGER 685 West Montrose Street-3`d Floor Clermont, FL 34711 Town of OAKLAND. TOWN MANAGER 220 North Tubb Street P.O. Box 98(if notice is by mail) Oakland, Fl 34760-0098 16. This Agreement is solely for the benefit of the parties hereto, and no right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third party. Nothing in this Agreement, either expressed or implied, is intended or shall be construed to confer upon or give any person, corporation or governmental entity other than the parties any right, remedy or claim under or by reason of this Agreement or any provisions or conditions hereof, and all the provisions, representations, covenants, and conditions herein contained shall insure to the sole benefit of and shall be binding upon the parties, and their respective representatives, successors and assigns In particular, and without limiting the generality of the foregoing, individual customers of OAKLAND are not intended as third party beneficiaries of this Agreement, and shall have no standing to enforce this Agreement or to assert any claim against CLERMONT which arises out of or is related any way to this Agreement or the services provided by CLERMONT under this Agreement 17. Each represents and warrants for the benefit and reliance of the other its respective authority to enter into this Agreement, and acknowledges the validity and enforceability of this Agreement. The parties hereby represent, warrant and covenant this Agreement constitutes a legal, valid and binding contract enforceable by the parties in accordance with its terms and conditions, and that the enforceability is not subject to any impairment by the applicability of any public policy or police powers 18. This Agreement sets forth the entire understanding of the parties with regard to its subject matter It supersedes and takes precedence over any and all prior negotiations, representations and agreements, oral or written, all of which are deemed to have merged into this Agreement and to have been extinguished except to the extent specifically set forth herein This Agreement may not be amended orally, by implication, by course of conduct, or in any other manner whatsoever than by way of a written instrument signed by both parties hereto or their lawful successors. This Agreement shall be construed in accordance with the laws of Florida and venue for any action or proceeding arising out of this Agreement shall be in Lake County, Florida This Agreement shall be binding on the parties hereto, as well as on their lawful successors and assigns. Each party represents for the benefit of the other that it has not entered into this Agreement in reliance on, or on the basis of, any promise, negotiation, representation, undertaking or agreement of the other party, oral or written, which is not specifically set forth within this Agreement. 19 If any portion of this Agreement is declared invalid or unenforceable, then to the extent it is possible to do so without destroying the overall intent and effect of this Agreement, the portion deemed invalid or unenforceable shall be severed here from and the remainder of this Agreement shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable. 20. This Agreement shall be recorded in the Public Records of both Lake County, Florida, and August 29, 2013 Exhibit A Estimated Sanitary Sewer Demand Estimate Demand Year (gpd) 2015 100,000 2016 140,000 2017 180,000 2018 215,000 2019 250,000 2020 280,000 2021 310,000 2022 350,000 2023 390,000 2024 430,000 2025 473,000 2026 500,000 2027 530,000 2028 560,000 2029 585,000 2030 605,000 2031 630,000 2032 665,000 2033 690,000 2034 715,000 2035 745,000 2036 775,000 2037 805,000 2038 835,000 2039 865,000 2040 890,000 2041 930,000 2042 970,000 2043 1,010,000 2044 1,050,000 2045 1,080,000 The future projects are based upon the following assumptions Equivalent Residential Unit(ERU) Factors published by Orange County Utilities(02/11) Wastewater ERU=250 gallons per day Current Zoning and Land Use Designations Existing Residential Neighborhoods coming online in phases over time Nearly 200 acres of vacant land along State Road 50 developed for Commercial uses Exhibit"B" High Strength Waste Surcharge and Hydraulic Peaking Factor Surcharge OAKLAND shall pay to CLERMONT in addition to the Intergovernmental Wholesale Rate the following surcharges as may become due based on the criteria and formula set forth below: I. High Strength Waste Surcharge Criteria. A. Surcharge/or abnormal strength wastes. 1. A surcharge shall be imposed where the wastewater from OAKLAND contains an abnormally high BOD or suspended solids concentration. The surcharge in dollars shall be computed by multiplying the average milligrams per liter(mg/L)of each constituent that exceeds three hundred (300)mg/L minus 300 mg/L,times the metered sewage flow of OAKLAND during the 9 billing period in millions of gallons times a treatment surcharge factor. 2. The treatment surcharge factor shall be derived annually from the following formula(the factor of 600 being the maximum normal BOD plus suspended solids content expressed in milligrams per liter). Treatment Surcharge Factor=Intergovernmental Wholesale Rate per million gallons 600 3. CLERMONT at any time, may take samples of OAKLAND's wastewater. Should a sample show abnormal strength, CLERMONT will take two (2) additional samples within the next succeeding ten (10) days. The average of these three (3) tests will be used to determine whether a surcharge is due for that month, and, if so, the amount thereof. OAKLAND may request additional samples, and CLERMONT will take such additional samples and include the results thereof in calculating the average strength in the month in which taken, provided that the cost of such additional samples shall be paid for by OAKLAND. B Definition of Terms. 1. Surcharge - Amount of money added to OAKLAND's monthly bill to defray the additional expense that might be created due to high strength wastewater discharge to CLERMONT's system in the billing period. 2. BOD - five-day biochemical oxygen demand as determined in accordance with the testing procedure as defined in Standard Methods for the Examination of Water and Wastewater ("Standard Methods"), latest edition. 3. Suspended Solids - Non-dissolved solids contained in the sewage that can be removed by filtration as determined by the testing procedure as set forth in Standard Methods, latest edition. 4. Each Constituent - Defined as either BOD or Suspended Solids as far as waste strength is concerned. II. Hydraulic Peaking Factor Surcharge. A. Surcharge For each day that OAKLAND transmits wastewater to CLERMONT's system for a consecutive four-hour period at a flow rate in excess of 200% of the Average Daily Peak Flow ("ADPF"), up to 250%of the ADPF, OAKLAND will pay a 1 % surcharge on its monthly charge not including the High Strength Surcharge above For each 5% or fraction thereof in excess of 250% for a consecutive four-hour period that the flow exceeds the Average Daily Peak Flow,OAKLAND will be billed an extra 1 % on its monthly service charge. B Definitions. Average Daily Peak Flow (ADPF) - OAKLAND's total flow during the four (4) consecutive months of greatest flow during the twelve (12) month period ending on the last preceding September 30th, divided by the total number of days in such four (4) month period Average Daily Peak Flow in such four (4) month period will be based on the flow meter readings used for billing OAKLAND. Orange County, Florida as required by applicable Florida Statutes IN WITNESS WHEREOF, each of the parties has caused its duly authorized representatives to set their hands to this Agreement on the dates indicated below. THE CITY OF CLERMONT, FLORIDA a�; ,•, so ' • 10,A); (7:±' Turville, Jr. , Mayor YPIL, 02 ATTEST: L. I `. Tracy Ackroyd, City Clerk APPRO 1 AS TO 1 RM AND CONTENT Daniel F. Mantzaris,CITY ATTORNEY Witnesses Mk, GOB' L cr Print Name x rbG A t Ue(cm d Print Name• � iiensch I STATE OF FLORIDA COUNTY OF LAKE The foregoing instrument was acknowledged before me this 22nd day of October 2013, by Harold S. Turville, Jr., as Mayor of the City, of Clermont, FL, who executed the foregoing instrument and acknowledged before me that he executed the same for the uses and purposes therein expressed, and who is personally known to me. Notary Public SEAL Alibt Lam_ / My Commission Expires: Denise Rayl Noak DENISE RAyj Np, ::1117":* MY COMMISSION 5 EE 150618.o E December 20,2015 �oF v�oe Budget Notary Servos Th, THE TOWN OF OAKLAND, FLORIDA B' �� 1 .��1 J , Kathy Star , .t or (‘ ATTEST: l Pty `J ` `,41 . 'j ,/_,/%_/ _`_ , � / 4 '`\•.'y i C Ll Y,.3tSc ay, Town Clerk •, 'Y P':: s vonif TO FORM AND CONTENT: s , 0,4 t` , A B1tlladl llti , ,I TOWN /TORNEY Witnesses: iLLA __ Print Name y , 40 i Print Name- YQ.Q.Q,PZ e 0.l h ogyLs STATE OF FLORIDA COUNTY OF LAKE The foregoing instrument was acknowledged before me this 3 day of 2013, by9 dS 11912046k.. , as Mayor of the City of OAKLAND, Florida, who executed the foregoing instrument and acknowledged before me that he executed the same for the uses and purposes therein expressed,and who is personally known to me. 0,6,0°c,e, Notary Public State of Flonda 2 ^ Lisa M Waldron % It o My Commission EE033950 9`oFFkoa Expires 05/15/2015 a ,, "„ws ,,,, .",.1;,,,,� SEAL Notary Public 5 a lq. W-4.4 el`,v My Commission Expires: Type or Print Name Table 3-8 Page I of 2 City of Clermont Water and Wastewater Impact Fee Analysis Development of Wastewater System Impact Fee Line No. Description Amount Total Estimated Cost of Existing&Future Wastewater Treatment&Disposal Facilities: 1 Cost of Existing&Future Facilities LI] $40,673,425 2 Additional Borrowing Costs[2] 5,237,271 3 Additional Costs Capitalized-CIP[3] 44,863,500 4 Less Receipt of Grant Funds[4] (1,664,926) 5 Subtotal Wastewater Treatment and Disposal Facilities $89,109,270 6 Future Plant Capacity(MGD)(AADF)[5] 8.000 7 Projected Average Daily Flow(MGD)(AADF)[6] 2.195 8 ERC Factor-(GPD)(ADF)[7] 220.0 9 Estimated ERUs to be Served by Facilities 36,364 10 Percent Remaining Capacity of Facilities 72.57% 11 Allocation of Facilities to Incremental Growth $64,665,148 12 Rate per ERC Associated with Existing&Future Facilities $2,450.50 Primary Transmission System and Pump Stations: 13 Existing Facilities[9] $9,772,633 14 Additional Costs Capitalized-CIP[10] 8,200,000 15 Less Receipt of Grant Funds[4] 0 16 Total Primary Transmission Facility Costs $17,972,633 17 Estimated ERUs Served by Existing Facilities[11] 18,182 18 Estimated Future ERUs served by Collection Facilities[II] 0 19 Total Estimated ERUs served by Collection Facilities[11] 18,182 20 Net Rate per ERU of Primary Transmission Facilities $988.49 21 Total Combined Rate per ERU After Rate Adjustment $3,438.99 22 Rounded Rate per ERU $3,439.00 23 Cost Per Gallon $15.632 MDF=Maximum Daily Flow ADF=Average Daily Flow ERU=Equivalent Residential Unit GPD=Gallons per Day Footnotes continued on the following page. .. -a-') ch M int.0a) o 1i ', 0 CO = o0 O x = N ./// 4 W _ w = OO ,' 0 , I�� r ' I, p iel � �0°1 it \i 1 ,s1 L ,. � � I° � I e r 11, *, 4 ij .i 1 ::* CL ' * I i it i` 3 . �,. , w 0 (V C, . 8 iii . 1 ‘ .10h, . . . ," , el 1 1 I D !i . 4,4 , ,, o o r ' ( "_ g o 0 i o '' ..ii ftp, , e� 1.91110.i L iiL .i.; lir '� {l! Ltd " 10'S r� W v_ uu f'' o^ I o {{ s 1k .f�$�^p� fie. T `I Z J